HOUSE RENT ALLOWANCE (HRA) RECOMMENDED BY 3RD PAY REVISION COMMITTEE

3.14.1 HRA is payable to the CPSE executives in line with the classification of cities and the rate as applicable for Central Government employees. As per the pay-revision of 1.1.2007, it is being paid at the rate of 30% of BP for cities with population of 50 lakhs & above (X-class), 20% of BP for cities with population between 5 to 50 lakhs (Y-class) and 10% of BP for cities with population less than 5 lakhs (Z-class).

3.14.2 The 7th CPC, after rationalizing the existing rates, has recommended HRA of 24%, 16% and 8 % of the Basic Pay for Class ‘X’, ‘Y’and ‘Z’cities respectively. The 7th CPC, however, has also recommended that the rate of HRA will be revised to 27%, 18% and 9% when DA crosses 50%, and further revised to 30%, 20% and 10% when DA crosses 100%.

3.14.3 The Committee recommends that classification of cities and the rate of HRA shall continue to be as applicable for Central Government employees. Accordingly, the recommended HRA is as per the following:-

Classification of cities

Rates of HRA

X-class

(Population of 50 lakhs & above)

24% of Basic Pay

Y-class

(Population of 5 lakhs to 50 lakhs)

16% of Basic Pay

Z-class

(Population below 5 lakhs)

8% of Basic Pay

3.14.4 The Committee also recommends that the rate of HRA will be revised to 27%, 18% and 9% when IDA crosses 50%, and further revised to 30%, 20% and 10% when IDA crosses 100%.

3.14.5 Further, if at any point of time, the Government exnhances the rate of HRA for the Central Government employees, the same is recommended to be made applicable to the CPSE employees.